Canadian North Resources Inc. Reports Operational and Financial Results for the Six Months Ended June 30, 2026

Canadian North Resources Inc. (CNRI) reported financial results for the six months ended June 30, 2026, noting a net loss of $165,134, or $0.00 per share, and a comprehensive loss of $190,316, or $0.00 per share. The company reported no revenue, remaining in a pre-revenue status, with cash and cash equivalents standing at just $3,277 at June 30, 2026.

In a subsequent event, the company authorized up to $2,000,000 of Series 1 Convertible Promissory Notes bearing 10% interest, maturing July 31, 2027. These notes are convertible at $0.25 per share for up to 8,000,000 shares. A director executed a subscription agreement for $1,000,000 of the notes on August 27, 2026; the transaction is subject to TSX Venture Exchange acceptance, with proceeds designated for working capital.

The operational update reiterated previously disclosed bioleaching results, citing copper recovery of 87.7–90.6%, nickel of 96.8–99.0%, cobalt of 96.9–99.3%, and PGEs greater than 80%. These results were achieved at low temperatures without external heat or added acid. Future plans include collecting bulk surface mineralized samples, exploration and definition drilling, and engineering and environmental studies to support a prefeasibility evaluation.

The company adopted semi-annual reporting under CBO 51-933. At the June 25, 2026 AGM, shareholders re-elected all directors, reappointed MNP LLP as auditors, and approved the stock option plan.

Canadian North Resources Inc. (CNRI) released figures regarding bioleaching that reference the October 7, 2025 news release, adding no new drill results or resource estimates. The company’s financial disclosure indicates a cash balance of $3,277, representing effectively no liquidity. While the net loss was modest, the balance-sheet position is the primary concern.

The company announced convertible note financing on August 26, 2026, with today’s release confirming a director’s $1,000,000 subscription and the working-capital purpose of the funds. This financing provides only short-term relief, as the amount is small compared with the approximately $9 million 2026 work program referenced in the MD&A for fiscal 2025.

The notes create either debt or dilution risk. At the current $0.17 share price, the $0.25 conversion price is out of the money, meaning the notes may remain a 10% cash-repayment obligation due July 2027. If converted, they could add up to roughly 7% to the share count. Insider participation signals some director support but also highlights that external funding is weak. The related-party exemption means no minority shareholder approval was obtained.

Overall, the news is negative but largely expected, with no game-changing new information, no first-time strategic investor, no M&A, and no major technical update.

Canadian North Resources Inc. is a junior exploration and development company focused on critical metals for clean energy, electric vehicles, batteries, and high-tech industries. Its flagship asset is the 100%-owned Ferguson Lake nickel, copper, cobalt, palladium, and platinum project in the Kivalliq Region of Nunavut, Canada. The property consists of 96.9 km² of mining leases and 156.9 km² of exploration claims, for a total of 253.8 km². The site is located near established mines, including Meadowbank, Meliadine, and Amaruq, and features an all-year gravel airstrip, a 55-person camp, and Starlink connectivity.

An NI 43-101 mineral resource estimate dated March 19, 2024, reports the following:

• Indicated: 66.1 Mt at 0.75% Cu, 0.47% Ni, 0.05% Co, 1.10 g/t Pd, and 0.19 g/t Pt.
• Inferred: 25.9 Mt at 0.98% Cu, 0.58% Ni, 0.07% Co, 1.43 g/t Pd, and 0.25 g/t Pt.
• 80% of Indicated Resources are open-pit: 52.7 Mt.

Exploration history includes 756 diamond drill holes totaling 226,167 metres. The 2022–2023 campaign totaled 39,270 metres in 145 holes. The project is currently in advanced exploration, transitioning toward a prefeasibility study. There is no current production, revenue, NPV, IRR, capex, or mine life in the provided materials. Royalty status is not disclosed in the provided materials. The Company states 100% ownership, but underlying royalties or streams are not confirmed.